Elliot Waves is a unbelievable subject which additionally helps fibonacci measurement
Elliot waves could be categorized as A B C D E F
Its thought-about that value enlargement ends at leg F
I’ll focus on about these in excessive to low mode as per screenshot.
1. Wave AB : Ought to be impulse
2. Wave BC : Ought to be minimal 0.382 of AB
3. Wave CD = Ought to go minimal 1.618 of AB
4. Wave DE = the place E Ought to be at all times lesser than C
5. Wave EF = Closing wave earlier than value is able to reverse
Nevertheless simply studying fundamentals wont make you an excellent dealer as value additionally makes double high and backside and invalidate waves
An Elliot wave could be began from anyplace comparable to center of pattern, not restricted to Tops and backside however totally on web, individuals says it at all times begin from high and backside which isn’t true.
So long as the foundations of waves are happy it could actually begin from center of pattern too.
Instance:
Harmonics waves and Elliots waves are comparable however could differentiate in some situations
In each Harmonics and Elliot waves a dealer validates wave.
Validation Strategies:
1. Fibonacci : A dealer makes use of fibo to validate waves, Retracement and Growth are two instruments which is broadly utilized by merchants. Retracement for coming into at pullback whereas enlargement is used for reversal buying and selling the place a dealer trades in opposition to the commerce. Extremely rewarding technique, HFT and prop desk dealer by no means commerce pullbacks as they’re scalper their essential objective is accumulation and distribution the place they maintain for seconds and make sufficient which a standard males doing job earns in a 12 months.
2. Ratios : comparable to A to B, B to C, C to D and D to E
What invalidated Waves?
Guidelines. If guidelines are damaged, a wave is not legitimate.
How one can commerce Elliot Waves?
You may commerce in Three steps
1. Construction Verification
Validate ABC minimal earlier than taking actions on DEF, Don’t commerce at ABC
2. Ratios Verification
Confirm Ratios after validating construction
3. Entry Verification
Entry ought to be verified by value motion, Numerous techniques are used amongst merchants which could be private and might not be shared publicly. These techniques are like CHESS techniques the place you must entice your opponent
till he’s test and mate, value is not going to transfer out of your entry to TP. In case your opponent i s test and mate then you may take entry. In different phrases they are saying value is taking stops or liquidity.
Instance : 
4. Entry: When you apply right tactic, You may enter in a commerce. Be aware that time
4. Wave DE = the place E Ought to be at all times lesser than C
So Worth could go simply 1 pt under C and it nonetheless fall and wave can be legitimate but when your SL is inaccurate then you’ll lose cash, so guidelines are guidelines. in case you are buying and selling DE and promoting at E,
You must put your SL above C solely nonetheless that is simply an instance about how self-discipline is adopted up by Elliot waves dealer and its not identical as proven on books.